In Mortgagee Letter 2022-05 and Housing Notice 2022-02, HUD increased the substantial rehabilitation for FHA insured loan programs from $15,000 to $16,983 per unit. HUD also increased the maximum mortgage amounts for high-cost areas and the maximum exception allowed for a specific project:  

  • 170 percent exception of any geographical area (up from 140 percent) and 
  • 215 percent as the maximum exception allowed for a specific project (up from 170 percent).   

A list of high-cost areas is available in the notice and letter.